Comtech agrees to sell most of its Satellite & Space Communications business for $157.5 million
Comtech Telecommunications Corp. entered a definitive agreement to sell the majority of its Satellite and Space Communications segment to an affiliate of Gilat Satellite Networks Ltd for a base cash price of $157.5 million, with closing expected in calendar 2026. For fiscal 2026 the company reported net sales of $249.6 million, adjusted EBITDA of $20.6 million (8.3% of sales) and year‑end liquidity of $61.3 million. Management said the divestiture will sharpen focus on its Allerium public‑safety and cyber‑training businesses and improve financial flexibility. Pro‑forma, the sale would raise adjusted EBITDA to roughly $37‑$39 million for the year.
Why it matters
The company expects the transaction to enhance its balance sheet and lower cost of capital, while the refocused business should generate higher adjusted EBITDA of $37‑$39 million versus $20.6 million reported. Investors will see a shift in revenue composition toward public‑safety solutions and a stronger cash position.
Key facts
- 1Base cash purchase price of the sale is $157.5 million, subject to adjustments. tradingview.com
- 2Fiscal 2026 net sales were $249.6 million. tradingview.com
- 3Adjusted EBITDA from continuing operations for fiscal 2026 was $20.6 million, representing 8.3% of net sales. tradingview.com
- 4Consolidated liquidity at fiscal year‑end 2026 was $61.3 million. tradingview.com
- 5Operating cash flow for Q4 2026 was $18.5 million, marking the sixth consecutive quarter of positive cash flow. investing.com
- 6Pro‑forma adjusted EBITDA for fiscal 2026 would have been between $37.0 million and $39.0 million after the sale. investing.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.